Louis Vuitton 2007 Annual Report Download - page 36

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34
LVMH is a major global player in the selective perfumes
and cosmetics sector with the major French brands Christian Dior,
Guerlain, Givenchy and Kenzo. This group of world-renowned
brands is completed with BeneFit Cosmetics and Fresh,
two young, highly innovative and rapidly growing American
companies, the prestigious Italian brand Acqua di Parma,
Parfums Loewe and Make Up For Ever, a French brand
specializing in professional make-up products, which
has successfully begun to expand its customer base to the public.
The year 2007 also marked the launch of two perfumes
for the Fendi and Pucci brands.
Revenue
EUR million
2,285
2,519
2,731
2005 2006 2007
Profit from
recurring
operations
EUR million
173
222
256
2005 2006 2007
Investments
EUR million
115
98
115
2005 2006 2007
Strongest
growth
in the
selective market.”
“
Revenue
by geographic
region of delivery
in %
16% France
43% Rest of Europe
8% United States
6% Japan
13% Rest of Asia
14% Other markets
Breakdown
of revenue
by product
category
in %
55% Fragrances
26% Cosmetics
19% Skincare products
Strategy and objectives
In a market where many new and sometimes short-lived products tend to stray
from what is really expected from a luxury product, our major brands conti-
nue to cultivate the values that inform their identity and to strengthen their
differentiation strategies. Their goal is to offer the customer seeking reference
points a share of the dream, a pledge of excellence, and a guarantee of the
exceptional. Their success is built both on the development of their flagship
lines, the magic of which is extended and enriched with time, and on the daring
innovation of their new creations. In a context of increased globalization, their
steady and profitable growth is generated by both a consistent global strategy
and a careful, structured approach to each market with adaptation to regional
characteristics. The alternative and niche brands, far from being merely bit
players within the brand portfolio, continued to establish a significant place in
their specific market segments and grow selectively.